by BLACK ENTERPRISE Editors
August 9, 2025
These consumers might be able to spend lower than they did a 12 months in the past for a similar home.
Home costs reached a document excessive in June, with month-to-month prices additionally hovering in historic territory. This unprecedented lack of affordability has stalled the housing market and prompted a shift in energy in the direction of homebuyers, as sellers wrestle to dump their listings. A slower market provides international consumers — a lot of whom pay in money — extra room to take benefit. And because of a weakening U.S. greenback, these consumers might be able to spend lower than they did a 12 months in the past for a similar home. In some instances, it’s the equal of a ten% low cost — whilst residence costs climb.
Among the many international locations Redfin analyzed, Russia led the cost when it comes to currency-related financial savings, adopted by Switzerland and Sweden.
So what’s behind this shift? The place can international consumers reap essentially the most advantages? This text from Redfin Actual Property explains all of it.
Why has the U.S. greenback dropped in worth?
The U.S. greenback has had its worst begin to a 12 months since 1973. It has dropped greater than 10% previously six months compared with currencies from the nation’s main buying and selling companions.
Donald Trump’s commerce proposals and debt-increasing laws, together with cussed inflation and rates of interest, have solid doubt on the U.S. as the middle of the worldwide monetary system. In consequence, analysts have been more and more anxious a couple of shift away from the U.S. greenback and property extra broadly, which might have profound results on the housing market.
What does a weaker greenback imply for the housing market?
When the greenback falls, international cash can go additional, which provides international consumers extra buying energy. For instance, whereas U.S. residence costs rose 1% 12 months over 12 months in June, the equal worth fell 9.6% in Russian rubles.
So, regardless that the median U.S. residence worth reached an all-time excessive of $447,000 in June, consumers from many international locations are successfully paying lower than they did a 12 months in the past. Money consumers see the largest benefit, whereas these taking over a mortgage may see much less profit – particularly when factoring within the larger rates of interest international consumers can face.
Who’s saving essentially the most?
Based on Redfin’s evaluation, consumers from seven international locations are seeing financial savings, with Russia main the way in which.
Previous to this shift, international consumers bought $56 billion price of U.S. houses from April 2024 to March 2025. Whereas nonetheless beneath the peaks of the 2010s, that’s a 44% improve from the prior 12 months and a transparent signal of renewed curiosity in U.S. actual property. Worldwide funding may proceed to climb if currencies achieve extra worth over the greenback
Not each purchaser comes out forward
Consumers from international locations the place the native forex has weakened towards the greenback are as an alternative seeing costs rise.
These international locations have a number of the closest commerce ties to the U.S., with the biggest buying and selling companion, Mexico, taking the largest hit. This checklist additionally represents the highest 4 international locations the place America’s international homebuyers originate from.
Reductions are highest in cities the place costs are dropping
The international forex benefit is even stronger in markets the place residence costs are falling. Among the many 100 largest metros, these 5 noticed the largest year-over-year worth drops in June, which correlate to essentially the most financial savings.
Worldwide homebuyers are flocking to the Sunshine State, persevering with a years-long development of preferring Florida over the remainder of the nation. Current worth drops following the state’s pandemic-era increase may create extra financial savings for international consumers within the coming months, too.
What’s subsequent for the housing market?
Within the quick time period, home costs will seemingly proceed to rise in most areas of the nation, albeit extra slowly than lately. When paired with elevated mortgage charges, consumers must cope with an additional extended interval of unaffordability.
Nevertheless, aid could possibly be in sight. As stock continues to pile up from sellers who’re unable to discover a purchaser, consumers can have extra choices to select from. Redfin predicts that this shift in provide and demand will push home costs down by the tip of the 12 months. For international consumers, this is able to be much more favorable than in the present day. If the greenback stays weak, world demand for U.S. actual property may proceed to develop.
Methodology
Based on a Redfin evaluation of change charges for a collection of main foreign exchange towards the U.S. greenback. The evaluation converts the median U.S. residence worth into the equal worth in foreign exchange utilizing month-to-month common change charges. All information as of June 2025.
This story was produced by Redfin Actual Property and reviewed and distributed by Stacker.
